Asked by Sheri Walton on Jun 02, 2024
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Your client wants to invest a $250,000 inheritance and grow it to $325,000. Rounded to the nearest month, how long will this take if the investment earns 7% compounded annually?
Compounded Annually
Interest on a loan or investment is calculated once a year, with each year’s interest added to the principal for the subsequent year’s interest calculation.
- Describe the influence of compound interest on the financial performance of investments and loans.
- Determine the essential rate of return to reach a specified financial target.
Verified Answer
SL
Learning Objectives
- Describe the influence of compound interest on the financial performance of investments and loans.
- Determine the essential rate of return to reach a specified financial target.